Influencer Gifting: 7 Benefits of Giving Free Products to Influencers

Influencer Gifting: What Is It and Why Your Business Needs It

What makes influencer marketing so effective? Well, part of it has to do with trust.

When an influencer speaks about a product or service on their platforms, it is as if it is an endorsement from someone close to you. It is of great benefit to companies to have direct access to their desired customer base.

By working with influencers who have an appealing and genuine sound, your company is showcased in front of individuals who already have an affinity for your specialty; facilitating the creation of a long-term influence!

Authenticity is key. When an influencer sticks to one specific market, like cruelty-free makeup or vegan sport supplements, their supporters will regard that individual as a professional about the subject and develop faith in and follow the guidance that they offer.

Collaborating with influencers can be an excellent way of marketing your merchandise and brand name.

How Much Does Influencer Marketing Actually Cost?

This is a major point to ponder in the business, which boils down to picking the most appropriate collaborator and the magnitude of the endeavor.

At the beginning of influencer marketing, budding social media celebrities accepted brand partnerships in exchange for goods.

But for most, those days are long gone. Rather than simply offer endorsements for free merchandise, now a lot of the major Instagram influencers expect to be paid substantially in exchange for featuring products or services on their profiles. This is because their accounts have become a main source of revenue for them.

Certain influencers mention that they could request a payment between $5,000 and $10,000 for each sponsored post. There is no disputing the fact that social media influencers have been a great addition to brand promotions.

What is a reasonable price to ask for taking into account the size and magnitude of the collaboration, along with the amount of promotion and stories you need? In order to collaborate with influencers who have over 100k followers, it may cost significantly more for their posts. We consulted with various influential individuals, to find that the standard amount for a single Instagram post is usually $1000. Additional services (including takeover, Instagram Stories results, IGTV videos, blog articles, etc.) show a marked diversity in terms of fees.

Instead of micro-influencers who demand around $300 per Instagram post, nano-influencers request just a small amount for their services. Although cash is the most popular payment option, in-kind campaigns still can be a significant transaction.

Unfortunately, there’s no one-size-fits-all answer when it comes to how much influencer marketing costs, and there are a variety of factors involved that go well beyond an Instagram influencer’s number of followers.

How Small Businesses Can Leverage Influencer Marketing with Micro- and Nano-Influencers

The surge of interest in influencer marketing as a result of Instagram has been immense, yet it doesn’t require a huge budget to become involved.

An increasing number of companies are starting to realize the benefits of joining forces with Insta influencers with a niche fan base that is intensely involved.

It has been found by HubSpot that almost a third of Instagram accounts are controlled by micro-influencers who have fewer than 100,000 followers. Mega-influencers, who have an enormous following of 5 million or more, are an incredibly small fraction of the total number of influencers worldwide.

What are micro-influencers and nano-influencers and what advantages do they offer to businesses?

Generally, a micro-influencer is an individual with a dedicated and interactive social media audience, albeit not a massive one.

The number of followers generally falls somewhere between 10,000 and 100,000. Rather than having a large following, nano-influencers typically have a limited audience, generally in the range of a few thousand.

Influencers have won a type of “celebrity status,” but micro- and nano-influencers feel more like normal buyers, thus they are considerably more approachable.

A micro-influencer endorsement of a product on their channels has the appearance of a reliable suggestion from an acquaintance, as opposed to an endorsement by a well-known person.

This can be of enormous assistance for a fledgling company hoping to make a name for itself in the industry or to extend its consumer base.

What about nano-influencers? The document from Influencer Marketing Hub stated that those with a relatively small following – less than 1,000 – experience a much higher engagement rate of 7.2% on Instagram, when compared to the 1.1% of those influencers who have greater than 100K supporter.

Nano-influencer marketing has started to become more and more popular as companies are taking advantage of the authenticity it provides and its ability to work with algorithms. Team up with a nano-influencer if you are aiming to target a very specific local market.

It should be stated that due to the more modest prices charged by micro- and nano-influencers, companies can invest in sustained connections without breaking the bank. If a person who follows another individual observes that individual cooperating with an organization repeatedly, it will assist them in establishing trust.

Instead of investing heavily in a single posting, smaller businesses would receive more benefit from constructing a durable relationship with the influencers and becoming established with the viewers who follow them.

Benefits of Giving Free Products to Influencers

You may not have generous sums of money at your disposal to compensate influencers for each post. And that’s okay. There’s always a starting point. For those beginning with influencer marketing, it is suggested to start with a small scale. Influencer marketing efforts with less reward, for example granting complimentary items.

We’ll be unpacking all the benefits of influencer gifting. You will keep abreast with all the knowledge that stands to be gained and you will recognize the importance of incorporating this inducement into your upcoming influencer advertising strategy.

1.  Show Your Commitment to Influencers

No remuneration, except for commission, is offered to the influencer, and this may not provide a strong incentive. Offering a complimentary item or service to your influencers could be a game-changer.

It is vital for the company to show how much they care about the campaign, particularly if they wish to call upon dedicated and devoted influencers.

But why is this so important? In order to draw in excellent influencers that would be appropriate for your business, upgrade your rewards. This will result in more ‘yes’ answers from influential people who would fit with your brand.

Consider this to be a good influencer recruitment tactic. To make it more likely that you will draw in positive influencers and locate the perfect one for your needs, give them complimentary product samples.

2.  An Attractive Incentive for Nano & Micro-Influencers

It’s comforting to know that nano- and micro-influencers tend to be content with any collaboration deals that are presented to them as well as with the gifts they receive from a brand. They don’t ask for much. They have not yet achieved the standing to demand more.

Despite having a limited following, nano influencers are not yet able to make money from each post they publish. They are striving to progress through whatever endorsements they are able to attain. When musicians sign contracts that involve commission payments, they become very enthusiastic at the thought of obtaining merchandise for free when they secure a gig.

3.  Lower Cost to Company (Cost Effective)

Providing complimentary goods as a way of rewarding influencers is an economical option as opposed to paying out money. Offering up items that are not diamonds, first-class vehicles, or distinctively valuable objects is a necessity.

It is presumed that merchandise with low to average market prices is being sold.

How can granting items to people cost your organization less money? For instance, an influencer might receive a payment of $150 for every post they make. Instead of giving hard cash, you could also provide them with goods or services valued at $150.

You can provide influencers with the same worth of your items without having to pay in cash. This consequently reduces your expenses to the ratio of the cost of the merchandise. Basically, if you have the right profit margin, it’s possible to acquire just $80 worth of items that would be considered to be worth a total of $150. By utilizing this tactic as an alternate to paying out money, you have saved $70 in real money.

4.  Produce Influencer Driven Product Photography & Videography

Lots of companies fail to capitalize on this opportunity as they get too focused on the immediate priority of driving sales through their influencer marketing plans.

Offering complimentary items to prominent figures in your field can potentially result in them creating presentations and content with visuals related to the product as part of the deal.

Have you ever brought in a skilled photographer and videographer to take pictures and make videos of a product? You probably discovered how costly this investment is. You don’t have the option to spend generously as often as you’d want.

Utilizing influencers is immensely beneficial if you provide them with complimentary products. The equipment they have is pretty good and they have the experience of editing media, which your company could take advantage of.

Provide them with complimentary items and guide them to create specialized merchandise images. This might include up-and-coming influencer model images, imaginative image arrangements, and even excellent videos with product reviews.

5.  Increase Sales of Influencer Campaigns

Sales. Financial compensation is the end goal of your influencer marketing endeavors. Ultimately, it’s about the benefit you obtain in exchange for your investment.

What are the potential advantages of providing complimentary items to your influencers as part of your influencer program in terms of increasing your sales?

Let’s explore two possible scenarios.

End result: You dispatch publicizing material that is standard to the influencer to advance and post on their web-based media.

In the second case, you offer complimentary items to your influencer, who in turn will make their own personalized picture and video material showcasing your merchandise and then advertise it to their fans.

Which of these two possibilities do you believe will generate the most attention for the campaign?

It’s clear. An influencer who shares content they have created pertaining to your products on their social media is likely to pique more attention. For a number of reasons.

A product demonstration or endorsement from an influential person is likely to be seen as more valid than an ordinary advertisement. The material they produce appears more natural to the individuals who follow them and could be more influential in having an effect on purchasing decisions. An increased amount of interest, a higher degree of believability, and greater levels of convincingness lead to better sales performance.

6.  Engagement Through Influencer Giveaways

Influencer-led giveaways can be a great way of showing appreciation to their followers. Provide influencers with complimentary items for running publicity for your business via social networks and to expand your brand’s prominence even further.

You are not alone in your efforts to get people excited about your business. Influencers are constantly attempting to expand their reputation, and they always search for methods to improve their public image.

Offering giveaways is an outstanding way to boost enthusiasm for your company and the person who is influencing it.

You can generate excitement and gain significant traction for a promotion by organizing a product giveaway. A planned launch of a giveaway can assist in amplifying the number of people who follow your social media accounts, boosting website activity, collecting new subscribers, and providing noteworthy awareness for a new business or product.

7.  Increased Marketing Exposure – Online & Offline

Depending on the characteristics of the product or service being provided to influencers, it may be possible to generate additional advertising awareness outside the scope of the first project. This exposure extends offline as well.

Influencers don’t just have an online presence; they extend their impact into the actual, real world. If your items are of high quality and are liked by your respected celebrities, they are likely to use or exhibit your merchandise. Consider the people in the influencer’s circle including their followers, buddies, relatives, and any other person who might find out about your items since they have observed the influencer utilizing them.

What should an influencer gifting note include?

Gifting an influencer is a way to show appreciation, in addition to being a form of payment. A gift card for an influencer should be customized to show that you have taken the time to consider their individual taste. Writing a personalized message will demonstrate your dedication and establish a personal relationship with the person of influence. You ought to include a brief description of the item in the present message.

You can use influencer marketing to gain an advantage for your business and help it thrive.

No matter the size of your business, influencer marketing can be a big help, providing gifts of products or generating exposure through sponsored posts. By taking advantage of digital marketing, you can reach even wider audiences and generate more sales.


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